THE PALMA ALLIANCE:

PIGCAWAYAN, ALAMADA,
LIBUNGAN, MIDSAYAP, &
ALEOSAN COTABATO PROVINCE

“ALL FOR ONE AND ONE FOR ALL”

Building LGU Alliances for
Infrastructure Development
“ALL FOR ONE AND ONE FOR ALL”
Building LGU Alliances for Infrastructure Development
Copyright © 2004 Philippines-Canada Local Government Support Program
(LGSP)

The Philippines-Canada Local Government Support Program encourages the

use, translation, adaptation and copying of this material for non-commercial
use, with appropriate credit given to LGSP.

Although reasonable care has been taken in the preparation of this book,
neither the publisher and/or contributor and/or editor can accept any liability
for any consequence arising from the use thereof or from any information
contained herein.

Printed and bound in Manila, Philippines

Published by:

Philippines-Canada Local Government Support Program

Unit 1507 Jollibee Plaza
Emerald Ave., Pasig City
1600 Philippines
Tel. Nos. (632) 637-3511 to 13
www.lgsp.org.ph

This project was undertaken with the financial support of the Government of
Canada provided through the Canadian International Development Agency
(CIDA).
 CONTENTS
Summary 1

About Kabalikat Palma Infrastructure Project (KPIP) 3

Project History 3

Implementing The Palma Kabalikat Infrastructure: Objectives, 4

Structures, And Mechanics

Project Results 7

Replicating Kabalikat Palma Infrastructure Project 8

Key Implementation Steps 8

Reference Matrix On Replicating Kabalikat Palma Infrastructure 12

Project

Lessons For Replication: Keeping The Engines Running 14

Annexes 17
Summary

I
n August 2001, mayors of five neighboring towns in Cotabato Province who were
attending the Chief Executives Development Management Program (LDMP) at the
Asian Institute of Management came up with a brilliant idea. They decided to pool the
resources of their municipalities together to help each other rehabilitate and construct
barangay and farm-to-market roads.

Thus was the Kabalikat PALMA Infrastructure

Project (KPIP) born. “Kabalikat”, a Tagalog
“ALL FOR ONE AND
term meaning shoulder-to-shoulder or each ONE FOR ALL”
one lending a shoulder to another became the
name and guiding principle of the project. The
Building LGU Alliances
KPIP also became the first project of what came for Infrastructure
to be known as the PALMA local government
alliance. Development
Under Kabalikat, the five municipalities of
Pigcawayan, Alamada, Libungan, Midsayap The Kabalikat PALMA
and Aleosan comprising the PALMA Alliance Infrastructure Project of
pooled their road construction equipment and
systematically rotated equipment use among the PALMA Alliance:
themselves free of charge. Each municipality Pigcawayan, Alamada,
made a contribution to the equipment pool.
Pigcawayan brought in its road grader and Libungan, Midsayap,
dump truck. Alamada shared their road grader
bulldozer, backhoe loader and dump truck.
& Aleosan Cotabato
Libungan put in a road grader, dump truck Province
and backhoe loader. Midsayap contributed a
bulldozer, backhoe loader, pay loader, compactor and dump truck. Aleosan its road
grader, bulldozer, pay loader and dump truck.

To support the effort, the provincial government of Cotabato provided the trailer for
transporting the heavy equipment and made available a road construction team for the
project.

The spirit of LGUs helping one another deliver infrastructure services through equitable
sharing of resources proved to the great benefit of the LGUs. With better roads made
possible through the project, residents, especially in remote barangays, can now be
reached by government extension workers. These barangays have also been exposed

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

to various farming technologies, which have increased their agricultural productivity. The
project has also reduced the cost of road construction for the LGUs, and decreased travel
time and transport cost for hundreds of residents.

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

ABOUT THE PALMA KABALIKAT INFRASTRUCTURE PROJECT

Addressing a Need, Helping Neighbors: Project History

Like many rural municipalities in the Philippines, the five municipalities of Cotabato Province
of the PALMA alliance shared a common problem. Because of poor roads, several of their
upland and far flung barangays were deprived of basic services and faced limited prospects
for growth. Residents from these barangays found it difficult to commute and transport their
farm produce to the market.

But because of limited resources, individual local government units (LGUs) could ill afford
massive rehabilitation or construction of barangay or farm to market roads.

To address the problem, Mayor Ronaldo B. Pader of Libungan, who is concurrently the Chair
of the PALMA Alliance Board, broached the idea of pooling the equipment of five towns to
fast track their respective infrastructure development with 4 mayors of neighboring towns
who were also attending the Chief Executives Development Management Program (LDMP)
conference. All four mayors readily accepted Pader’s idea. Initial discussions on how to
implement the project were made.

The five mayors subsequently met to formulate the mechanics for project implementation
and to formalize the arrangement in a Memorandum of Agreement. The MOA was signed
on October 31, 2001 signifying the intentions of 5 LGUs to implement the PALMA Kabalikat
project as an alliance.

In February 2002, the first rotation of infra- equipment was made. It covered 20 barangays in
the municipality of Aleosan where approximately 12 kms of barangay road were completed.
Each municipality got its turn to use the equipment until the early part of January 2003. A
total of 70 kilometers of barangay farm to market roads in 27 barangays in the 5 municipalities
were rehabilitated under the first rotation. The project is now on its second round.

Before and After construction shots of the Aleosan Tomado-Malapang Road

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

Implementing the PALMA Kabalikat Infrastructure: Objectives, Structures and Mechanics

Objectives

PALMA KABALIKAT aims to fast track the rehabilitation of barangay and farm to market
roads in order to make government services accessible to people and assist these barangays
achieve development, progress and prosperity.

Organizational Structure

At the alliance level, two committees were formed:

1. Infrastructure Project Steering Committee (IPSC); and

2. Infrastructure Project Technical Working Group (IPTWG)

The Infrastructure Project Steering Committee has 12 members, including:

• Mayors of 5 Municipalities
• MPDC of 5 Municipalities
• SB member of the Infra Committee of 5 municipalities
• One (1) Municipal Engineer chosen from amongst the municipalities
• Provincial Planning and Development Officer
• One (1) representative from the Office of the Congressman

The IPSC is tasked to:

• Oversee the establishment and implementation of the Infrastructure Project
• Discuss and agree on matters related to fund sourcing, appropriation of funds and equity
sharing
• Ensure all LGUs equitably benefit from the Infrastructure Project
• Approve the scheduling of projects
• Settle disputes among the participating LGUs

The Inter LGU Infrastructure Technical Working Group (IPTWG), on the other hand, is
composed of:

• Municipal Engineers from all municipalities

• MPDCs from all municipalities
• CSO representative (President of the Farmers’ Association?) involved in the Project
Monitoring and Evaluation Committee from each municipality

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

The IPTWG has the following mandate:

• Prepare Program of Work for each municipality

• Establish and recommend project schedules
• Prepare listings of heavy equipment required for the respective projects
• Supervise the implementation of the respective projects
• Coordinate (jointly with the respective municipalities) the logistical requirements of the
projects
• Monitor, evaluate and provide feedback to the IPSC

Project Mechanics

To operationalize this project, the five mayors agreed on the following mechanics:

1. The project shall be rotated within the five (5) member municipalities, starting from the
municipality/barangay where the need is most crucial, and until such time that all the
farm-to-market roads in all the barangays within the Alliance shall have become all-
weather roads.

2. Each member municipality shall provide only the road construction equipment needed
in the particular project.

3. All the necessary equipment for the project shall be simultaneously mobilized to maximize
time and ensure project completion within the target period. Equipment are garaged
within the project area throughout project duration, but may be withdrawn at any time by
the LGU owner during emergencies.

A fleet of equipment includes a bulldozer, a grader, a pay loader/back hoe loader,

3-4 dump trucks, and a road compactor. Usually 2 fleets are deployed in the
project to be able to finish an aggregate total of 10-15 kilometers of road during the
project duration of 10 working days.

4. Each project must have a minimum duration of only ten (10) working days (under normal
conditions).

It is recommended that the bulldozer be brought to the project site 2-3 days
before the actual project implementation to prepare an adequate amount of quarry
materials needed for the project. Implementation of the project takes place in an
average of ten (10) days under normal conditions. There is an average of one (1) km.
road accomplishment per day. In cases where the conditions are more difficult, the
host LGU may request for an extension.

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

Before and After construction shots of the Aleosan Tomado-Malapang Road

5. The host municipality shall provide for the prime mover/trailer for the transport of the
heavy equipment (bulldozer, vibrator/compactor, pay loader).

6. The drivers and operators shall be provided with P200.00/day honorarium each, aside
from provision of food and sleeping quarters.

7. The host municipality will provide for the fuel, oil, and lubricants for use of the equipment
during the project implementation.

8. The host municipality shall also provide security personnel or peacekeeping forces to
secure the project area and its premises.
9. Minor repairs of the equipment costing P1,000.00 or less shall be shouldered by the host
LGU, but repair costs over P1,000.00 shall be borne by the LGU owner.

The five (5) mayors also agreed that equipment would come rent free to highlight the bayanihan
spirit that they wanted to cultivate. These mechanics were outlined in the memorandum of
agreement signed by the 5 mayors

Making Available Appropriate Resources

To show the LGU’s commitment to the alliance, PALMA committed to put up 2million pesos
for the project management office that would take charge of the day-to-day operations of the
KABALIKAt infrastructure project and other alliance projects. Each LGU agreed to contribute
200,000 pesos per year to the alliance.

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

Project Results: Multiplying Resources Lead To Multiple Benefits

Sharing resources has resulted in benefits that are shared by all 5 municipalities

1. Opening up of upland barangays to development

The project provided upland barangays with access to modern farming upland technology
and made basic services from government and the private sector more accessible.

2. Increased agricultural productivity

After the completion of the roads, the production of traditional crops such as corn and
vegetables increased by as much as 20%.

3. Reduced road construction cost

Ordinarily, the cost for the rehabilitation of a barangay farm to market road per kilometer
is P800,000.00 to P1M based on the MRDP standard. With the Kabalikat PALMA
Infrastructure Project, a 10-15 km all weather FMR cost each LGU/barangay only P350,000
to P500,000 or an estimate of P35,000-50,000 per km. of road. This in turn, freed up
more LGU funds for other development projects.

4. Reduced travel distance and time

Before the road rehabilitation, the distance and travel time to the town centers took a
longer time. After the project was implemented, travel time was reduced to as much as
50%, making travel faster, more convenient and less costly to residents.
5. Reduced transport and passenger fares
Passenger fares for both jeepneys (6 wheelers) and “habal-habal” (single motorcycle for
hire) were reduced by 20% and transportation costs of products/goods also went down
by as much as 60%, contributing to greater savings for commuters and more profit for
farmers.

6. Accessibility of government service and assistance

Far flung barangays, especially those classified as “critical” areas due to peace and
order problems have become more accessible to government services and assistance.
The government’s presence through the services being provided is concretely felt by the
residents especially in the so-called critical areas. This has, in a way, contributed in
addressing some of the peace and order problems affecting the area.

7. Instilling discipline and mutual respect among barangays

The project also instilled discipline among barangay officials who respected the criteria for
prioritization of barangays to be served. The pulling out of equipment from the barangay
sites where the project is on-going is minimized even if there is a perceived urgent request
from other barangays. The difficulty on the part of the LCE of explaining to the Punong
Barangay when such requests are not granted is lessened.

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

8. Spreading the spirit of Bayanihan

In the meantime, the “bayanihan” spirit that spurred the project has spread to other activities,
including the hosting of barangays of the equipment and workers. Preparing food and
lodging for the road workers has also become a bayanihan activity at the barangay level.
On the side of the field implementors (the drivers and operators of the heavy equipment),
the friendship, camaraderie and bonding among themselves motivated them work harder
and more effectively, unmindful of additional work hours they need to put in.

REPLICATING THE PALMA KABALIKAT INFRASTRUCTURE

PROJECT

The spirit and initiative of KABALIKAT is now being replicated by other LGUs, with the
following identified implementation steps.

Key Implementation Steps

A. Pre-Implementation

1. Create an Alliance or Inter-LGU Organizational Structure to Manage the Infrastructure

project and two committees are required:
• An Infrastructure Project Steering Committee (IPSC); and
• A Infrastructure Project Technical Working Group (IPTWG)

Scenario 1: If the LGU wants to create an Alliance like that of PALMA.

a. Conduct meeting of LCEs of participating LGUs to discuss forming of Alliance to be

initiated by the Provincial Government. The discussion will focus on the need to create
an alliance, how it will be established, how it will be managed, who composes the
board, functions and responsibilities of the board, roles and responsibilities of LGUs
(contributions), setting up the PMO, drafting of MOA(creation and operationalization of
alliance), formulation of strategic plan, manual of operations.

b. Subsequent meeting can focus on defining mechanics for implementation, establish

criteria to be used in identifying and prioritizing LGU to be initially benefited by the
project, drafting the MOA and agreeing on project rotation and time-frame.

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

Scenario 2: Setting-up of Inter-LGU Organization Structure to manage the Infrastructure

Project in lieu of an alliance PMO

Conduct of meetings among LCEs and other technical staff of participating LGUs to discuss
the following:

- Mechanics of implementation
- Creation of Inter-LGU Infrastructure Project Steering Committee and TWG
- Drafting of MOA

2. Enact appropriate legal and legislative measures to support the project at the alliance
and municipal level:

Municipal Level Alliance Level

Sangguniang Bayan Resolution Memorandum of agreement and agreement on
the implementation mechanics
The respective Sangguniang Bayans issue a
resolution authorizing the Local Chief Executives The MOA includes the allocation of funds,
to enter into a Memorandum of Agreement with inventory of heavy equipment and the specific
the other LGUs. The MOA includes the allocation details of the implementation mechanics.
of funds, inventory of heavy equipment and the
specific details of the implementation mechanics.

3. At the municipal level, conduct pre-implementation activities for infrastructure projects

including:

a. Establish the criteria for identifying priority barangays and identify/prioritize barangays
to be served by project

This can be done through a meeting with the mayor, MPDC , Municipal Engineer and
SB committee on infrastructure to formulate and agree on the criteria for identifying
priority barangays. Based on the agreed criteria, the group can compile a shortlist of
beneficiary barangays . The list will then forwarded to MDC and SB for approval.

Example of the criteria used as the bases for identifying priority barangays in
PALMA:

1) The barangay is not qualified to avail of other foreign assisted projects like the
MRDP, STAR-CM;
2) Far-flung/hard-to-reach;

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

3) Productive, but economic development is hindered because of the dismal condition

of roads;
4) Critical, in terms of peace and order situation where government service has not
been felt by the constituents.

b. Present the Barangay Short list to the Municipal Development Council for deliberation.
The Municipal Development Council (MDC), after deliberation, recommends the
inclusion of the identified priority barangays in the allocation of funds in the Annual
Investment Plan (AIP). (The MDC planning and budgeting usually takes place in
October). The AIP is submitted to the Sangguniang Bayan for approval of budget
allocation.

c. Conduct a survey of the roads in the selected barangays

• Road survey usually takes one week.
• Barangay counterpart to the Project is discussed during this time.
• The Punong Barangay (barangay chair) negotiates for the deed of donation for the
road right of way (ROW) .

d. Prepare the Program of Work

• Municipal Engineer prepares the Program of Work and submits the list of equipment
needed to the Local Chief Executive.
• The LCE endorses the request to the PMO for the preparation of the communication
indicating the list of the needed equipment to be fielded for the project and its
subsequent distribution

e. Create a working Committee to support the project at the barangay level, including
committee on accommodation, food preparation and Peace and Order.

f. Prepare a budget for day-to-day operations

The LCE can set a meeting with the Municipal Budget Officer, the Municipal
Accountant, and the Municipal Treasurer, to discuss fund releases and person/s
responsible for cash withdrawals from the Municipal Treasurer for the day-to-day
necessary expenses of the Project.

g. Obtain the heavy equipment from other LGUs

The PMO prepares the communication addressed to the other four (4) LCEs thru the
respective Municipal Engineers specifying the specific equipment needed to be fielded
for the project and to the Provincial Engineer for the use of the Prime Mover/Trailer.

h. Prepare the opening ceremony (launching) in the Barangay

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

Before and After construction shots of the Aleosan Tomado-Malapang Road

B. Project Implementation

1. Conduct an opening ceremony at the Barangay level where each road project is
undertaken

2. Implement the infrastructure project

3. Supervise and monitor the project

The host LGU Project Engineer and a PMO representative monitors the timeliness, quality
of work and compliance based on the program of work, as well as identifies minor
problems and interventions needed.

4. Facilitate Project Completion, Turn-Over, Socialization and Fellowship

5. Prepare for Reporting and Feedbacking to the IPSC

• Submit Accomplishments Report to the participating municipalities and the provincial

government
• Ensure equipment check and maintenance by proceeding to check the condition of the
equipment and undertaking appropriate maintenance.
• Initiate preparations and project cycle for the next Project

6. Conduct Information and Promotion Activities to Build Popular Support

Examples of activities undertaken by PALMA Alliance: 1-hour PALMA Alliance Radio

program aired every Friday afternoon over Radio Station DXMS and the quarterly
publication of the alliance “KABALIKAT”

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

Table 1. Reference Matrix for Replication

Key Implementation Steps/Stage Timeline Estimated budget required

1. Create an Alliance or Inter-LGU
organizational structure
1.1 Scenario 1: Creating an Alliance
1.2 Scenario 2: Setting-up of Inter-LGU
Organization Structure to manage
the Infrastructure Project in lieu of an
alliance PMO
2. Enact legal and legislative measures
3. Sign Memorandum of Agreement among
LGUs
4. Municipal Level Pre Implementation
a. Identify priority projects per
municipality / Make Short list
b. Approval of the short listed barangays
to the MDC and SB for budgetary
allocation
c. Conduct survey of roads in shortlisted
barangays
Cost of series of meetings/
workshops such as; meals and
snacks, accommodation for live-in
workshops, traveling expenses of
LGU staff for live-out workshops
(especially in formulating the
MOA, Manual of Operations,
Strategic Plan) , Honoraria of
Facilitators, supplies and materials,
reproduction of documents.
4-6 months Cost of meetings such as; meals
and snacks, supplies and materials.
3 -4 weeks Traveling expenses of LGU officials
and staff attending the meetings.
None
½ day Cost of snacks for the ceremonial
signing of MOA
1 week and 2
days
2 days
1 week Cost of meetings
1 week Meals and snacks of surveyors, fuel
and gasoline for the vehicle used in
the survey .

Meals and snacks:

P 250/surveyor x 9 surveyors x 5
days = P 11,250.00
Fuel and gasoline:
P 500.00 for 5 days survey
d. Submit program of work prepared by 2 weeks Supplies and materials
municipal engineer to PMO

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

Key Implementation Steps/Stage Timeline Estimated budget required

e. Create working committees at the 1 day None
barangay level to support the project
f. Prepare a budget for the day to day 1 day None
operations of the project
g. Get heavy equipment from 3 days Fuel and gasoline for the prime
participating LGUs mover: P 3,600.00

Honorarium of operators/drivers
of prime mover: P500/unit x 5
units= P2,500
h. Prepare for the opening ceremony 2 days Supplies and materials for the
stage decors and printing and
reproduction of invitation and
program
PROJECT-IMPLEMENTATION PHASE
5. Conduct an opening ceremony/project 1 day Cost of meals and snacks, supplies
launch per project and materials for printing and
reproduction of program and
invitation
6. Implement the project 2 weeks P 35,000 – P 50,000/kilometer
(under normal for the rehabilitation and
condition) improvement of road
P 50,000 – 70,000/kilometer for
10 working days opening of new road
–
Monday- This cost is already inclusive of the
Saturday Sunday- following expenditures:
rest day Honoraria of Driver- P200/day
Meals and snacks of drivers:
Repairs and Maintenance
Fuel and gasoline
Total Project Cost:
For 10-15 km. road – P 350,000.00
to P 500,000.00
7. Project Supervision and Monitoring On daily basis Cost of fuel and gasoline for the
until the vehicle used in monitoring
completion of
project

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

Key Implementation Steps/Stage Timeline Estimated budget required

8. Project Completion and Turnover
8.1 Formal Turn-over ceremony
8.2 Socialization and fellowship for
drivers and operators of heavy
equipment
1 day Cost of meals and snacks, supplies
and materials for the printing of
program and invitation.

Lessons for Replication: Keeping the Engines Running

The PALMA experience shows that the Kabalikat project can be replicated easily by any
cluster of contiguous LGUs who have heavy equipment. Replicators, however, need to
ensure that the following elements are present in their LGUs for project success:

1. Awareness and sensitivity of mayors to the urgency of the needs so that they would set
aside political affiliations and ensure the immediate implementation of the project.

2. Strong bond and camaraderie/friendship and unity among member LCEs and their
unselfish attitude to share resources

3. Willingness of LGUs to pool their heavy equipment and other resources

4. Full support of their respective Sangguniang Bayan

5. Barangay counterparting to the project

6. Support and commitment of the Provincial Government

7. Inclusion of project budget in the Annual Investment Plan of municipalities and

barangays.

8. Regular reporting/feedbacking of PMO to the PALMA Alliance Board

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

Construction of the Alamada Tinaguman-Suli-Kisulao Road

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 ANNEXES
“ALL FOR ONE AND ONE FOR ALL”
BUILDING LGU ALLIANCES FOR INFRASTRUCTURE DEVELOPMENT

The Kabalikat PALMA Infrastructure Project of the PALMA Alliance:

Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan
Cotabato Province
“All for One and One for All” Building LGU Alliances for Infrastructure Development

Annex A: Sample Memorandum of Agreement (MOA) for KPIP

Sample MOA with information on:

- Brief description of the project
- Mechanics of implementation
- Conditions of the implementation

This document is necessary for LGUs wanting to implement the Kabalikat PALMA Infrastructure
Project (KPIP), and falls under Step # 3- Memorandum of Agreement on the Implementation
mechanics.

Sample Memorandum of Agreement (MOA)

This Memorandum of Agreement is made and entered into this ___________ day of _______,
between and among the municipalities comprising the _________Alliance.

As follows:

Municipal Government of _______________________________________ represented herein

By Mayor______________________________________________________________________

Municipal Government of _______________________________________ represented herein

By Mayor______________________________________________________________________

Municipal Government of _______________________________________ represented herein

By Mayor______________________________________________________________________

Municipal Government of _______________________________________ represented herein

By Mayor______________________________________________________________________

WITNESSETH

That the “ Kabalikat Insfrastructure Program is aimed at helping the LGUs comprising
the _______________________ Alliance in the immediate and effective delivery of
Infrastructure services thru equitable sharing of their resources specially equipment with the
aim of fast-tracking the rehabilitation of roads in the alliance.

That the above-mentioned parties do hereby agree with the conditions hereunder
stipulated for the implementation of Kabalikat Infrastructure Program as follows:

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 The Kabalikat PALMA Infrastructure Project: Pigcawayan, Alamada, Libungan, Midsayap, & Aleosan Cotabato Province

1. The component municipalities shall have a composite equipment pool and shall detail
equipment as their counterpart in the operation of the pool;

2. The equipment to be detailed as follows:

Municipality/City------Grader, Dump truck, Payloader
Municipality/City-----Grader, Dump truck, Bulldozer
Municipality/City----Grader, dump truck, loader,compactor

3. The requesting municipality shall provide the fuel and oil including the honorarium of
the operator;

4. The equipment shall stay with the requesting LGU for a maximum period of two (2)weeks
or equivalent to ten (10) working days;

5. The repair and maintenance cost. If in case the equipment is borrowed by the component
LGUs, P 1,000 below should be shouldered by the borrower of equipment and P 1,000
above will be shouldered by the owner of the equipment;

6. Transportation cost of hauling of the Bulldozer and Road Roller/Compactor shall be

shouldered by the borrower LGU;

7. Difference arising from out of the interpretation or implementation of this Agreement

shall be settled amicably through consultations or negotiations between and among the
PARTIES;

8. This agreement may be altered, modified, or amended in writing by mutual consent of the
PARTIES concerned;

9. This shall take effect on the date of its signing and shall be in force for a period of three
(3) years unless it is sooner terminated or extended by mutual consent of the PARTIES;

10. The component municipality may, at anytime whenever it determines for any reason that
termination as in its best interest, terminates the contract, by giving 30 days prior written
notice thereof to the contracting parties;

11. This agreement shall be binding upon majority votes of the members of the Board;

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“All for One and One for All” Building LGU Alliances for Infrastructure Development

IN WITNESS WHEREOF, the PARTIES have hereunto affixed their signatures on this
_______day of ________,200_ at _________, Philippines.

_____________Alliance Municipalities/Cities:

___________________ ___________________
Municipal/City Mayor Municipal/City Mayor

__________________ ___________________
Municipal/City Mayor Municipal/City Mayor

WITNESSES:

__________________ __________________

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